TORONTO, ONTARIO--(Marketwire - May 26, 2011) - Continental Nickel Limited (News - Market indicators) ("Continental" or "CNI" or the "Company") is pleased to announce the initiation of an airborne magnetic and electromagnetic (EM) survey at the St. Stephen Nickel-Copper project in New Brunswick. Continental can acquire up to a 75% interest in the project under the terms of an option agreement with Abitex Resources of Val-d'Or, Quebec.
The St. Stephen Ni-Cu Project has a $350,000 approved 2011 exploration plan and budget, which will include a 300 line km airborne EM survey and the completion of 1,000 metres of diamond drilling. The primary objectives of the program are to:
- Identify and prioritize all untested EM anomalies within the St. Stephen intrusion;
- Drill test selected new high priority EM targets and
- Carry out follow-up drilling on the sulphide zones discovered in 2010 at the Triple J and G targets.
The airborne EM survey is being carried out by Fugro Airborne Surveys Corp. utilizing their helicopter-borne HELITEM system. Magnetic and electromagnetic data will be collected over the known extents of the St. Stephen intrusion on east-west flight lines spaced 100m apart. Upon completion of the survey, data will be interpreted with the goal of selecting priority targets for diamond drill testing. Drilling is expected to commence in the fall of 2011.
In 2010, the Company reported the discovery of three new nickel-copper sulphide zones by drill testing high priority targets (Triple J, G and Billy's Brook) which were generated by new ground EM surveys. Highlights included 2.00% nickel and 0.56% copper over 3.3 metres, within a wider interval grading 1.0% nickel and 0.29% copper over 9.30 metres from diamond drill hole SSD10-003 drilled at Target G (Press Release, August 18, 2010) and 21.4 metres grading 0.63% nickel and 0.22% copper at the newly discovered Triple J Zone (Press Release, September 15, 2010). These discoveries represent the first significant drill intersections in the western portion of the St. Stephen intrusion and resulted directly from employing modern ground EM surveys in an area of limited past exploration. The 2011 airborne EM survey will provide new, high quality EM data across the entire intrusion including the under explored western and southern portions.
John Nitschke, Chairman of Continental Nickel Limited, reported "The 2010 drill program achieved considerable success with the discovery of three new nickel-copper sulphide zones at Triple J, G and Billy's Brook while drill testing new, high conductance ground EM anomalies. The 2011 exploration will build on this success by further exploration of the newly discovered sulphide zones at Triple J and G zones, as well as other unexplored targets. The St. Stephen intrusion is viewed as having excellent potential to host additional nickel sulphide deposits."
The Company would like to acknowledge the support it has received from the New Brunswick Junior Mining Assistance Program, under which it was awarded a matching grant of $40,000 in support of its 2010 drill program at the St. Stephen Project.
Project Summary
A project summary on the St. Stephen Project is provided on the Company's web site at www.continentalnickel.com.
Qualified Persons
The quality control, technical information and all aspects of the exploration program are supervised by Patricia Tirschmann, P. Geo., Vice President, Exploration for CNI. The information in this release was prepared under the direction of Ms. Tirschmann for Continental Nickel Limited. Ms. Tirschmann is a qualified person as defined by National Instrument 43-101.
About Continental Nickel
Continental Nickel Limited is focused on the exploration, discovery and development of nickel sulphide deposits in geologically prospective, but under-explored regions globally. The Company's key asset is its 75% interest in the Nachingwea project in Tanzania, where NI 43-101 compliant Mineral Resources (Measured and Indicated) have defined 60,900 tonnes of contained nickel, and an additional 131,000 tonnes of contained nickel in Inferred Mineral Resources. The project is a 75:25 Joint Venture between the Company and IMX Resources Limited of Australia.
The Company also an option to earn up to a 75% interest in the St. Stephen nickel project in New Brunswick, Canada, where it has discovered new nickel-copper sulphide zones from its recently completed 2010 diamond drill program.
Continental Nickel Limited has 39,126,508 shares issued and outstanding (46,559,914 on a fully-diluted basis) and trades on the TSX Venture Exchange under the symbol CNI. The Company remains well-funded with over C$8.7 million in the treasury as at March 31, 2011.
On behalf of Continental Nickel Limited
John S. Nitschke, Chairman
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, future plans and objectives of Continental Nickel Limited, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Continental Nickel Limited's expectations are the risks detailed herein and from time to time in the filings made by Continental Nickel Limited with securities regulators.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.